Bangkok: The Energy Regulatory Commission (ERC) is raising alarms about the increasing prices of Liquefied Natural Gas (LNG) and their implications on the new electricity tariffs for the January-April period. According to Thai News Agency, the ERC anticipates that LNG prices will remain elevated for the next one to two years, as the market awaits new supply sources to replace those lost due to recent disruptions.

Dr. Poolpat Leesombatpaiboon, Secretary-General of the ERC, outlined the current challenges in managing the volatility of global energy prices, particularly following disturbances in the Strait of Hormuz that have affected the transportation routes from major LNG producers like Qatar. The disruptions have caused LNG prices to surge to US$28 per million BTU, compared to the usual US$12 per million BTU. Dr. Leesombatpaiboon noted that prices spiked to as much as US$25 per million BTU during the recent crisis, and he expects them to stay high until new supplies from regions such as the Americas, Africa, or the Far East become available.

In response to the situation, the ERC and policymakers have launched three primary measures to alleviate the impact on the public. These include accelerating domestic gas source exploration with Malaysia in the Gulf of Thailand's Block B18, expediting new energy concessions in the Andaman region and onshore areas, and maintaining stringent cost controls to prevent additional burdens on consumers.

As for the electricity price outlook for early 2027, the ERC is in urgent discussions with the Electricity Generating Authority of Thailand (EGAT) and PTT to determine the most suitable rates. They recognize the public's concerns about potential price increases and stress their commitment to minimizing the impact of global energy price fluctuations on consumers.

Additionally, the ERC is preparing to address the anticipated electricity demand from the burgeoning data center and AI sectors, expecting it to approach 30,000 megawatts. Measures include establishing a joint infrastructure oversight board, defining regulatory measures for this user group, and developing a new tariff structure to accommodate various purchasing options while ensuring fairness and avoiding undue strain on the general public.